New Delhi: The Kerala Government in its affidavit told the Supreme Court that it owns 82 per cent of the shares of the Uralungal Labour Contract Cooperative Society Ltd (ULCCS).
It also mentioned that an order has been passed permitting the ULCCS to undertake any number of projects without a financial limit.
The state government filed an affidavit in the Supreme Court on a petition filed by M A Mohammed Ali against handing over the construction of a seven-storey court complex in Kannur to ULCCS.
Mohammed Ali's construction company had given the lowest quotation for the construction of the complex. However, the division bench of the Kerala High Court ordered that the contract be awarded to Uralungal Society, which quoted 7.1 per cent more than Mohammed Ali's company.
That is when Mohammed Ali approached the Supreme Court, which then sought an explanation from the state government.
According to the affidavit, the government has issued an order clarifying that if ULCCS undertakes a construction contract, it can be paid up to 10 per cent more than the lowest quotation made by a private contractor.
It also stated in the affidavit that it is a policy decision of the state government to grant relaxation to cooperative societies in construction contracts.